Janet Silvera, Gleaner WriterWESTERN BUREAU: THE JAMAICA Hotel and Tourist Association (JHTA) is disappointed with Minister of Finance, Dr. Omar Davies' decision to keep the proposed 8.25 per cent General Consumption Tax (GCT) on the tourism sector.
The new tax measure, which should have taken effect May 1, 2005, had been extended to October 1.
The JHTA had asked that the tax not be higher than 6.9 per cent, up 0.3 per cent from what members currently pay.
Minister of Industry and Tourism, Aloun N'dombet Assamba, announced the Finance Minister's decision during the JHTA's annual general meeting at the Sunset Jamaica Grande in Ocho Rios yesterday.
"Tehnically, the tax has been reduced, but not substantially," said a dejected Godfrey Dyer, outgoing JHTA president, shortly after learning of Dr. Davies's resolution.
In the statement, Dr. Davies outlined that workers will continue to enjoy full gratuity payments, but the cap on commissions paid to travel agents and tour operators will be 20 per cent, as opposed to 15 per cent, and transportation expenses will not be allowed in the computation of GCT.
SPECIAL TREATMENT
In conclusion, he said that he believes the sector has been given special treatment, but no further concessions can be made.
However, the JHTA leadership saw this as a drop in the bucket.
"I am extremely displeased," said Horace Peterkin, who was elected president at yesterday's meeting. "It is going to mean a substantial increase in the cost of our operation and we won't be able to recover it, until we change our rates next year."
According to Mr. Peterkin, even if the industry is able to pass the tax on to the consumer, the competitive environment that it finds itself in will not allow it to thrive.
